Manubhai Dahyabhai Bhoi Vs ITO (ITAT Ahmedabad)
Marriage gifts were received prior to the date of marriage itself could not lead to the conclusion that the same are not genuine: ITAT Ahmedabad deletes Rs 18.51 lakh addition for cash deposits – contract income u/s 44AD & marriage gifts found genuine
Ahmedabad ITAT allowed the assessee’s appeal & deleted an addition of Rs 18,51,500/- made u/s 69A towards cash deposits, holding that the sources—contract income declared under section 44AD & marriage gifts—were duly evidenced & not disproved by the Revenue.
Assessee, a teacher by profession, also undertook contract work during AY 2011–12. Assessment was reopened u/s 147; return filed declaring Rs 4,61,800 including salary & presumptive business income u/s 44AD. AO noticed cash deposits of Rs 14,20,000 in SBI & Rs 15,00,000 in HDFC Bank. Assessee explained sources- Rs 14,20,000 from contract income, Rs 9,00,000 from sale of agricultural land , Rs 1,00,000 from wife’s withdrawal & Rs 5,00,000 as marriage gifts & personal savings. AO accepted Rs 9,00,000 & Rs 1,00,000 but treated Rs 14,20,000 (contract income) & Rs 4,31,500 (marriage gifts) as unexplained, citing lack of supporting bills/vouchers & absence of contract activity in other years. CIT(A) dismissed the Appeal ex parte for non-response, sustaining AO’s addition.
